Odds are, one of the first things you will do after getting an accepted offer on your new home, is nailing down how you will be paying for it! Below are listed the most popular types of home loans which will guide you in finding the one that is right for you.

Fixed-Rate Loan

A fixed-rate loan is the most common type of loan which is especially true when interest rates are low. It guarantees that your payments will not change when the rates rise and fall, so you will always know what to expect. It is perfect for people who want to simplify the loan-payment process and who love predictability. Be advised however, it is a loan that is best suited for someone who plans to stay put for the majority of their loan time frame, so as to overall come out ahead.

Adjustable-Rate Mortgage

An adjustable-rate mortgage or ARM is ideal for someone who is not looking to make any long-term living commitments in their home. Typically, this type of loan will offer a lower rate than what you could expect from a fixed-rate loan but only for a period of time. This time frame typically ends at the 5 or 10 year mark and then rates will ebb and flow with the corresponding current interest rates. This could be a gamble. You could come out ahead if rates are low, however, if they shoot up, so do your payments.

FHA Loan

An FHA loan or Federal Housing Administration Loan is a great option for those who do not have a ton to put down as an initial down payment. Conventional loans typically require you to put down 20%, but an FHA loan can require as little as 3.5%. One downside to these loans however, is that they do not provide much flexibility. Rates are usually fixed, with either 15 or 30 year terms. Buyers are also required to pay mortgage insurance which can be around 1% of the overall loan cost.

VA Loan

A VA loan is a great option for those who have served 90 days consecutively during wartime, 180 during peacetime or 6 years in the reserves. VA, or Veterans Affairs loan, for those who qualify can purchase a home with no money down and with no mortgage insurance requirements. One catch however, is that the home you purchase must be your primary residence and can not be a fixer upper or investment property.

USDA Loan

This loan is targeted towards those living in rural development or areas. In this instance, the government helps out by financing 100% of the home price, which means no down payment necessary and on top of that, offers discounted interested rates. It is mainly targeted towards families living in rural areas who are also struggling financially. The USDA loan helps by putting home ownership in their grasp.

Bridge Loan

A Bridge loan is excellent for so many who are transitioning from one home to the next and find themselves needing financing for two homes at the same time. In this instance, lenders can wrap your current and new mortgage into one payment, and once your home is sold, you can pay-off that mortgage and refinance. In order to do a bridge loan, you must have excellent credit and a low debt-to-income ratio. These homeowners also must make sure that the two homes combined do not exceed 80% of the two homes’ combined value.

WHEDA Loan

For Wisconsin residents, a WHEDA loan, (Wisconsin Housing and Economic Development Authority), may be a viable option as well. It is targeted towards those who live in the state of WI and feel as though purchasing a home might be just out of reach. There are several loans to choose from, however, there are certain criteria you need to meet in order to be considered eligible. First, the home must be purchased in the state of Wisconsin. Second, there are strict WHEDA income limits that vary from County to County, so checking that in the County you are locating to will be one of your first steps. Be aware, that the income limit is the TOTAL income of all residents living in the home, regardless of who is applying for the loan or not. Other requirements include taking home-buying education and counseling prior to closing, as well as making the new home your primary residence. In addition to this, there are other minor considerations to keep in mind, for further information, click HERE.

There are so many details to keep track of when purchasing a new home! Hopefully, becoming familiar with all of your loan options can simplify things a bit. The more you research, the more likely you are to find the right fit for you! Happy home hunting!

At the initial stages of searching for a home, many people find themselves idealistic, making lists of specific details and priorities. However, as the market increasingly continues to move towards favoring sellers, many homebuyers are already finding themselves frustrated at how quickly homes are selling, and for such a high price! If you find yourself in this category, you are not alone! Below are a few tips that might help you to make just a few compromises that could end in a successful home sale.

1. Prioritize Size vs. Location

One of the first areas of compromise for most people is to evaluate which is more important: size or location? At the beginning, no doubt you had your perfect home and location picked out in your mind, however, think about how big of a deal would it be to have that perfect home not quite so close to work or school? Is the extra commute time worth it, if you are able to get exactly what you want space-wise? Or would you rather compromise on space so that your kids can walk to school and you can avoid rush-hour traffic at the end of the day? Making this first crucial compromise will lead you on a new path that will aid in helping you find the home that is best for your needs.

2. Be Open to a Fixer-Upper

I know! This next one for most can seem very scary and overwhelming! When searching for a home, especially for the first time, you really WANT to envision youI rself living in a space when you are walking through. This can be extremely difficult when the place is trashed, dark, damp or downright creepy. However, it may just be in your best interest to remove yourself emotionally and consider whether the actual space and location of the home may just be ideal. The potential for beauty is there even though initial impressions indicate otherwise, and having the faith in knowing that may be all you have to go on at first. Once it all comes together, however, you will be amazed at the transformation! Plus, you get to pick out all of the details that will make this home the PERFECT fit for you!

3. Evaluate Your Short vs. Long-Term Needs

Consider how long you plan to live in your new home. Most people end up moving several times before they settle and have mostly everything they want. Ask yourself, how important is a really big yard? If you don’t have kids yet, for example, maybe you can move again in a couple of years when that big yard might be more attainable. Or, consider whether you really need to have that extra bedroom right now. Is it something that can be put-off until the next purchase? Weighing these pros and cons can get complicated, especially if you are moving into the home with someone else who is also evaluating what is most important to them. Consider what is crucial for you to have right now, and what can be compromised on for a later date.

4. Expand Your Budget

If it is in your means to do so, consider expanding your budget to get the home of your dreams. Chances are, being realistic about this point will help you avoid extra frustration and missing out on the house you want, considering how quickly the market is moving homes right now. See if there are creative ways for you to make up the difference. Check with your bank or shop around with other mortgage lenders. You may be able to get a lower rate than you had previously thought possible.

5. Stay Put

Lastly, consider all of the factors above. If you sincerely feel as though you cannot compromise on your price or ideal home, consider staying put for a year or two. There is no guarantee that the market will change one way or another, however, if there is no urgency of purchasing at the moment, it may be in your best interest to wait it out. The last thing you want is buyer’s remorse a few months from now, because you bought a home that wasn’t really what you had in mind. Casually keep an eye on the market and see if anything pops-up that peaks your interest. Time may also be on your side to save-up for a bigger down payment or an opportunity to improve you credit score.

Searching for a new home is already a challenge, but becomes potentially even more so when so many others are competing for and prioritizing the same things that you are! Hopefully, the above tips help to re-evaluate what you really hold as the most important elements of your potential new home. Happy house hunting!

The real estate season is fast approaching and many are curious as to what predictions the experts have in store for us. Listed below are the 5 most popular themes currently circulating the web. Overall, the outlook looks good for 2017 to be a very profitable season!

1. Mortgage Rates Will Rise

As we already know that when the market is improving, other things will inevitably come along with it as well. First off, mortgage rates are forecasted to steadily increase, however don’t be alarmed. The increase should go up more slowly than what has been happening the last few months, topping off at somewhere around 4.2 to 4.3 percent. Although this is not quite as favorable as the summer of 2016, now is still a great time to lock in a good 30-year rate before slight increases occur in the upcoming months.

2. Millennials and Baby Boomers Will Move the Market

Both the Millennial and Baby Boomer generations will have a big impact on the housing market this year. Millennials are of age and financial position to buy their first home, and many are looking in a higher price range than what we have previously known as a typical ‘starter’ home in the past. One reason for this may be because more jobs are being created for the 25-34 year-old demographic than any other age group, and wages are still rising. Baby Boomers are also showing impact as well. Some are downsizing which is to be expected, but there is a good number who are buying even bigger houses in order to accommodate their children and growing families.

3. It is a Seller’s Market

There is a huge homebuyer demand right now as people who have been holding off until the market recovers have found their moment. Along with this homebuyer demand, there is a tight inventory which is creating a tremendous amount of competition amongst the homes for sale. Most sellers can expect to get multiple offers on their homes and sell for a price that they are pleased with. Because of this trend, expect for home prices to steadily rise as we head into the full swing of the real estate season for 2017.

4. The ‘Height’ of the Real Estate Season is Expected to Hit Early

I don’t know about you, but here in Wisconsin we have had an extremely mild winter! People are out and about more, and in general, seem ready to think about spring related activities at an earlier date. Also, the fact that mortgage rates and home prices are projected to steadily rise is cueing people in to get out early and get the best prices and rates possible.

5. New Construction will be Priced Higher

There is currently a shortage of construction workers in our country right now due to the recent changes in our political climate the last few months. Because of this, immigrant ‘cheaper’ labor is not as readily available and contractors are hiring workers that demand more pay. The upside of this is that home builders are encouraged by higher wages and therefore want to complete more houses, to keep up with the increased demand.

If you are thinking of buying or selling this year, now is an excellent time to get a head start before the season is in full swing. Let us know if you have any questions, or if there is any way we can get the ball rolling for you!

Purchasing a new home is a very exciting, and at times a stressful process! So many details to keep track of, and at the end of the road, one of the last items to be checked off the list, is the final walkthrough. The final walkthrough is crucial for many reasons in the home buying process. Ultimately, it is the buyers last opportunity to check the home before papers are signed and all responsibilities are transferred over to them! The suggestions below hopefully provide some guidance for a successful final walkthrough and no surprises upon move-in!

General Tips

Be prepared for a different feel when you enter the home. Many homes are not vacant upon the time of an accepted offer, and the final walkthrough is the first time the buyers see the home completely empty. Be on the lookout for excessive signs of wear and especially any signs of pests. Many find it helpful to split the home up into different areas and bring along a checklist for each. One main rule of thumb; if at all possible, avoid scheduling the final walkthrough on your way to the closing! Allow yourself and the seller to process and negotiate what needs to be done in case there is anything not working properly.

Kitchen

The kitchen is one of the main areas of the home to spend some extra time. If appliances are included in the purchase spend some time double-checking that they are in working order. Turn the stove and oven on and off, as well as the dishwasher. Check the refrigerator and freezer to make sure they are keeping a correct temperature and inspect their cleanliness. Turn the faucet on and off to check for leaks and check the disposal. If appliances have been removed, look for signs of mold or damage that may have been previously hidden.

Laundry Room

The laundry room is frequently overlooked, but also an important room to spend some time in! Turn the washer and dryer on and off to check for functionality. Also, inspect the utility sink for proper drainage and water pressure.

Bathroom

The bathroom is another important room to check thoroughly. If a home is going to contain mold, typically a bathroom is where it is spotted first. Check the sink and shower for hot and cold, water pressure and proper drainage. Note where there might be any standing water and inspect the area throughly. Also, check the area around the toilet for water damage and flush it to make sure it doesn’t run afterwards. Lastly, turn on the ventilation fan to make sure it functions properly.

Windows, Doors and Electrical

Walk through the house and test all the windows to see if they open, close and especially lock correctly. If you are there in the hot months of summer or the cold months of winter, feel to see if there is a draft. Check to make sure all the doors close and lock properly and test each electrical outlet! it is easy to do so with an outlet tester or even a cell phone charger.

Cleanliness and Curb Appeal

Sellers are required to clean their home before the buyers move in. Check to make sure there are not any unreasonable messes left behind. Also make sure that all that has been agreed upon has been moved out of the house. Having your walkthrough several days to a couple weeks before the closing will allow the sellers to take care of these things. Also, the upkeep of the outside can be very telling of what you may find inside as well! If vegetation is overgrown around the perimeter of the home, that might be a sign that pests have found their way inside the home, so be on the lookout! Also, check to make sure the exterior of the home looks as well cared for as the interior. It is your home’s first impression!

The above suggestions can provide some clear guidance for your final walkthrough, so that you are not coming through unprepared! Attached is a checklist that will hopefully help your walk-through go more smoothly!

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